Bitcoin / US Dollar
Price Analysis
Bitcoin bounced back at $11,800 after a severe correction at $11,200. The correction came after a bearish trend in the market that was spread all through the entire crypto market. The price broke the parallel channel, formed in the market, and moved downwards, finding support levels at $11,300. The support level proved strong enough to hold the bearish trend and reverse it towards a new, bullish trend.
The new bullish trend became stronger and brought the price back to the parallel channel, indicating that the previous bullish trend might continue and be the second wave for achieving even higher prices. The defining moment of the trend reversal was yesterday, where the trading volume was much higher than in previous days, allowing investors to expand their positions and move to riskier frontiers. The moving averages crossed each other a couple of days before, creating a reverse "Golden Cross" signal in the market, boosting the rumors in the market about a new bearish trend.
Like many other technical signals in the market, the reverse "Golden Cross" was not proved correct at that moment, creating doubts among investors for the resiliency for those signals in the market. In any case, we should consider that positive news was around the market, which might affect the price movement against the technical signals and enable investors to determine its value by different means.
In the short-term diagram, we can observe that the "green" days are much larger than the "red" ones, indicating that the "green" days have much more action in the market than the "red" ones. This is a definite characteristic of a bullish trend. It show another signal that the short-term trend in the market could change at any moment without any precautions or warnings.
Indicators
MACD index is still on the negative side, but we can observe that the two lines would cross each other, moving the index on the positive side and cumulating the positive momentum for the future. On the other hand, the RSI index is on a vague point, between values 55 and 60, indicating possibilities for price stability and a potential rise soon.
Ethereum / US Dollar
Price Analysis
As we have stated several times in the daily Price analysis articles, Ethereum is considered to be the 2020 winner till now. The price skyrocketed at $475, gaining a boost from the support level at $390. After the "head and shoulders" formation, many analysts expect the market to continue towards a bearish trend, as it couldn't break the $420 level. In this view, the reverse "Golden Cross" appearance made this point stronger, and the market is waiting for a downtrend.
Ethereum counteracted this situation, and we can see the results now. In March, ETH profits was about 500%, making it the most profitable crypto asset, at least among the major ones. The trading volume remained high during the previous, indicating investors' strong position and interest on that asset. We have to mention also that the two moving averages cross again, forming a "Golden Cross" this time, but as we stated before, we should not consider only those signals.
We expect Ethereum to gain new investors attracted by extreme profits and activities, thus, bringing more capital to the crypto market.
Indicators
MACD index moved to the positive side, creating more opportunities in the Ethereum market for investors that believe that could ride the curve and gain more positive results soon. On the other hand, the RSI index moved to the "overbought" area, indicating that investors should sell and liquidate their positions in the market as the price has reached too far. The contrast between the two indexes shows that the market faces a new challenge regarding its next moves and how it will move on.
Ripple / US Dollar
Price Analysis
The positive trend didn't let Ripple unaffected, and its price rebounded back to $0.30. Ripple's price took two significant hits during last month. The first hit was from $0.31 to $0.28, where it was uncorrelated to the rest market, but quickly bounced back at $0.32. The bearish trend that took over the crypto market dropped the price at $0.26, but the same crypto trend brought the price back to $0.30.
Those ups and downs in the market are the best-case scenarios for day-traders as the volatility allows daily profits and more opportunities for profitability. Ripple is often considered the "penny stock" for the major cryptocurrencies as its low price allows more significant returns by smaller moves in the market. Even if its price is considered small, the total available supply and the pre-mined feature didn't allow it to work like a "penny stock."
In any case, the trading volume seems to be larger than the stability period, indicating the investors' active interest in the market. In contrast, the reverse "Golden Cross" that appeared about a week ago seems to be proved wrong as the price keeps to rise after that.
Indicators
MACD index is on the verge to move to at value = 0, creating uncertainty in the market about the next move and how the future will be shaped. On the other hand, the RSI index moved to value = 60, indicating a potential price rise soon.
Litecoin / US Dollar
Price Analysis
Litecoin's ups and downs seem to move in an uncertain way, affected by different factors in the crypto market. These factors drive the price in different directions. During the previous month, we had observed the price to go from $62 to $54 and back to $67 and down to $60 and up to $62 again and again. The last move was testing the support level at $57 and the uptrend towards $62.
The volatility in the Litecoin market helps investors to understand that the fundamental facts don't play any significant role in the price movement for the majority of altcoins. As we have mentioned, Litecoin was abandoned by its founders, and only the market forces determine its price and corresponding value. The reverse "Golden Cross" appeared in the market, but it was proved wrong, showing another weakness in the market reading for many analysts. We expect Litecoin to move according to the market's momentum and deliver the same results.
Indicators
MACD index is the value = 0, indicating uncertainty for the price's future. In contrast, the RSI index has moved in the space between values 55 and 60, which means further uncertainty in the market as the price might remain stable or moved upwards soon.
Bitcoin Cash / US Dollar
Price Analysis
The same picture with Litecoin could be depicted in the Bitcoin Cash market, while the crypto market affected the uptrend that appeared in the market. The price found a support level around $265, a level that hasn't appeared previously in the market and rebounded towards $290, where it lays now. The "green" days have more massive volatility in the intra-day market, especially in the bullish run, creating quick profits during the bullish period.
The trading volume has not recorded any significant change since the bullish period, showing that the investors' interest is limited, and there is a need for attracting new investment capitals in the market. The reverse "Golden Cross" was proved wrong again, showing again that multiple technical signals should be taken into account when we need to make an investment decision in the crypto space.
Indicators
MACD index remained in the negative zone, creating a slowing momentum in the market, indicating that a possible uptrend will be slow and fragile. The RSI index lies between values 50 and 55, indicating stability in the market during the next days.
Correlations
Bitcoin / Ethereum = 0.69 (- 0.13), Bitcoin / Ripple = 0.94 (+ 0.01), Bitcoin / Litecoin = 0.85 (+ 0.06), Bitcoin / Bitcoin Cash = 0.91 (- 0.01)
Apart from Ethereum, the other altcoins didn't change their relation with Bitcoin, showing that they follow Bitcoin in its path, positive or negative. As we mentioned, the only exception is Ethereum, whose correlation coefficient dropped by 0.13, moving to medium correlation status, due to its major uptrend during the last few days. We should highlight at this point that Bitcoin and Ethereum correlation dropped to Ethereum's terrific performance, which unbinds it from Bitcoin's leading performance in the market. At this moment, the correlations will show us how much the market can carry on this trend and if there is a chance for reversal or continuation.
